Real Estate as an Outright Gift of the Entire or a Fractional Interest
An outright gift of unencumbered real estate may allow you to make a significant gift to Catlin Gabel without incurring capital gains tax on the transfer of a highly appreciated asset. In addition, you could see reductions in both income taxes and estate taxes.
- For tax purposes, you can deduct up to 30 percent of your adjusted gross income with gifts of real estate and can carry the deduction forward for up to five additional years.
- You may give your entire interest or a fractional interest in the property. However, the nature of real property gifts usually requires that they have a minimum equity of $100,000.
- Provided that you have owned the property for more than one year, a gift of an interest in real property to Catlin Gabel will entitle you to a charitable income tax deduction equal to the fair market value of the interest in the property on the date of the transfer.
- You will need to have your gift of real estate appraised by an independent appraiser to determine the value of your deduction, and then have the deduction substantiated by IRS form 8283.
A Gift of a Remainder Interest in Certain Types of Real Estate Property
If you own a primary residence, a second home, or a farm, and you wish to dispose of such property in your estate but you do wish to continue to use the property for your lifetime, then a unique gift opportunity is available.
- You may give Catlin Gabel a remainder interest in that property and retain the right to live in it for your lifetime.
- At your death, the property automatically passes to Catlin Gabel.
- This type of gift generates a current charitable income tax deduction equal to the fair market value of the property less the present value of your retained life estate.
Other Possibilities for Gifts of Real Estate
Real estate may also be appropriate for funding charitable remainder trust or making a bequest.
For more information about gifts of real estate, please contact:
Major Gifts Officer
503-297-1894 ext. 308